The airlines industry has been hit very hard by the economy crisis. The two largest airlines of the nation have reported huge losses for this quarter.
According to the sources, the AMR corp. saw increase in its losses, as a continuation with the losses it faced the previous year. The losses of fourth quarter were reported to be $340 millions. With this report on losses, the company had to face a fall in its share price by 24 percent.
The other company is the UAL corp., which reported $1.3-billion loss in the quarter. This was up from the losses in previous year, which was around $53 millions. Even this company had to face fall in share price of about 6 percent after reporting losses.
The position is same with the entire industry. The industry is facing a gloomy demand these days and in order to cope up with the situation, the players of the industry are announcing huge rebates on their fares.